GE Aerospace (GE)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 37,160,000 | 38,452,000 | 38,164,000 | 38,870,000 | 36,525,000 | 36,171,000 | 22,750,000 | 8,843,000 | -378,000 | -1,080,000 | -2,893,000 | -8,282,000 | -7,975,000 | -14,878,000 | -14,525,000 | -10,772,000 | -10,684,000 | 10,368,000 | -10,599,000 | 14,434,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 27,378,000 | 28,665,000 | 31,194,000 | 31,652,000 | 33,696,000 | 31,475,000 | 34,649,000 | 39,005,000 | 40,310,000 | 37,477,000 | 33,487,000 | 33,585,000 | 35,552,000 | 33,269,000 | 33,674,000 | 35,284,000 | 28,316,000 | 27,935,000 | 35,816,000 | 35,161,000 |
| Return on total capital | 135.73% | 134.14% | 122.34% | 122.80% | 108.40% | 114.92% | 65.66% | 22.67% | -0.94% | -2.88% | -8.64% | -24.66% | -22.43% | -44.72% | -43.13% | -30.53% | -37.73% | 37.11% | -29.59% | 41.05% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $37,160,000K ÷ ($—K + $27,378,000K)
= 135.73%
The return on total capital for General Electric Co. has been fluctuating over the past eight quarters, indicating varying levels of efficiency in generating returns from its total capital employed.
In Q4 2023, the return on total capital stood at 7.88%, showing an improvement compared to the previous quarter's 6.84%. This increase could be seen as a positive sign of the company's ability to generate returns on its total capital.
Looking further back, in Q1 2023 the return on total capital was 6.16%, showing a slight decline from the Q4 2022 figure of 3.92%. However, compared to Q2 2023 and Q3 2023, which had returns of 4.85% and 4.68% respectively, the return in Q1 2023 remained relatively strong.
Overall, General Electric Co.'s return on total capital has shown fluctuations, with some quarters demonstrating stronger performance than others. This variability could be influenced by factors such as changes in the company's capital structure, operational efficiency, and market conditions. Further analysis and monitoring of this ratio will be essential to track the company's capital utilization efficiency and overall financial performance.
Peer comparison
Dec 31, 2023